Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on COBHAM PLC. We currently have 6 research reports from 3 professional analysts.
|22Nov16 07:00||RNS||Cobham plc appoints new Chairman|
|11Nov16 03:50||RNS||Directorate Change|
|08Nov16 09:53||RNS||Director Declaration|
|24Oct16 07:00||RNS||Cobham Trading Update|
|19Oct16 05:28||RNS||Holding(s) in Company|
|30Sep16 09:30||RNS||Holding(s) in Company|
|27Sep16 04:02||RNS||Holding(s) in Company|
Frequency of research reports
Research reports on
10 Nov 16
History is likely to call 2016 Cobham’s annus horribilis. In 2015 the future looked bright, with the company delivering its first organic growth in 10 years. However, 2016 has seen three profit warnings and both the CEO and CFO resign. Two recent acquisitions, Axell Wireless and Aeroflex, have proved extremely challenging to integrate into Cobham, taking the wireless business from a 15% margin to significantly loss making. The company is in a hiatus as it awaits new management – CEO David Lockwood (Laird) and CFO David Mellors (QinetiQ) – so 2017 could be the start of a new era.
Yet another profit warning in a weak demand context
24 Oct 16
Cobham released a profit warning today, right before its Q3 results, mentioning a challenging environment. Underperformance has been driven by the SATCOM and Wireless business units both in the Advanced Electronic Solutions sector. Also, the Mission systems sector, despite being in line with expectations, remains at risk because of the US KC-46 tanker.
Back to the future
27 Apr 16
The FY16 profit warning and rights issue announced with the Q1 trading statement reflect the limited progress Cobham has made in recent years. The main problem appears to be a lack of core organic performance and reliance on an M&A-driven strategy to instil growth. These are similar criticisms to those levelled at previous management teams. Cobham now appears vulnerable as the technology positions and assets are attractive, but it looks like a slow process to drive value recovery in its current form.
24 Nov 15
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“Eroded” dividend support and “top ten” update
24 Nov 15
In our recent note “Income support – “the top ten”” dated 9th November, we screened large and mid-cap stocks for characteristics that were supportive of positive “dividend surprise”. In this note we briefly update on the latest news flow at those top ten stocks and run a new screen of the same universe of companies, looking for eroded dividend support, which has been taking place over a period of time. In some cases this could potentially lead to dividend disappointment, which is usually a significant alpha event. 8 stocks emerged and we comment briefly on these in this note, in the case of N Brown reaffirming our positive fundamental stance.
08 Dec 16
Elderstreet stake acquired 02 GENERAL NEWS Globalworth premium In this issue Venture capital firm Draper Esprit has taken a 30.8% stake in venture capital trust manager Elderstreet. Both investment managers focus on the technology sector and they will be able to co-invest. Elderstreet has investments in a number of AIM-quoted companies through its VCTs. The purchase was funded by an issue of Draper Esprit shares worth just over £250,000. Simon Cook, the chief executive of Draper Esprit, is a former partner at Elderstreet so he knows the business and the people who run it, although he did leave more than 14 years ago. Cook has previously acquired portfolios from 3i and Cazenove, two other firms where he has worked. Draper Esprit has an option to acquire the remaining shares in Elderstreet, which has more than £25m under management. Adding Elderstreet to the group enables Draper Esprit to offer investors a range of EIS funds, VCTs and an ISA qualifying listed evergreen patient capital fund. The enlarged group has venture capital assets under management of more than £350m. At the end of September 2016, Draper Esprit had a net asset value of 352p a share, which is similar to the current share price. The June 2016 flotation price was 300p a share. Draper Esprit is quoted on Ireland’s Enterprise Securities Market as well as AIM.
Focused on the long term
08 Dec 16
These are rare events but it is nice to see a management use its public listing advantageously to trade short-term dilution in EPS for the optionality of asymmetric upside in the long term. With over £10m already in the balance sheet, ABD has successfully raised £5.4m gross in a placing and expects to raise another £1m from an offer. We were not surprised to learn that the placing was over 3.5x oversubscribed. How many listed UK companies are positioned to take advantage of the digital revolution in the automotive industry? The additional investment in new people, facilities, products & services should be dilutive to FY2017-18 EPS but this is small price to pay to establish the leading supplier of integrated test, measurement and simulation solutions to the autonomous vehicle industry. Our forecasts assume that growth will accelerate from FY2019. We raise our target price to 575p based on 15x FY2019 EPS, equivalent to Ricardo, the only other UK stock which has embraced the optionalities offered by the technological changes in the automotive industry.
07 Dec 16
Severfield’s (SFR’s) H117 results were well ahead of the previous year; margin performance and order book development cause us to raise our FY17 profit expectations. This combination has also proved to be a catalyst for share price outperformance following the results. Revenue growth and further margin development towards management’s stated aim of doubling FY16 PBT by 2020 can sustain further progress.
Exceptional trading continues
08 Nov 16
Keywords has announced that the strong trading in localisation and audio services has continued into H216. In particular, the Synthesis business acquired in April continues to benefit from exceptionally strong trading. Full-year results are now expected to be materially ahead of consensus and we upgrade our FY16e EPS by 13%. Erring on the side of caution, we have not changed our FY17 estimates significantly. Nevertheless, we believe the company does have a platform to sustain double-digit earnings growth, and hence medium-/long-term prospects for further share appreciation remain good.
N+1 Singer - Waterman Group - Encouraging AGM statement in line with expectations
09 Dec 16
This morning’s AGM Statement confirms that trading in the first four months of the year to 31st October was in line with expectations. Revenue was slightly above the prior year period and cash collection has remained strong. The Group has reiterated its commitment to maintaining a progressive dividend policy. The statement is encouraging and we therefore leave our forecasts unchanged. We note the attractions of a 5% dividend yield and consider the shares inexpensive at 4.5x FY’17 EV/EBITDA.